All Forum Posts by: Brandon Croucier

Hi Nicholas,

When looking for hard money on a flip, there is a lot you need to take into account.

Some key points are as follows:

- Length of loan (How long will this project take?)

- Cost of capital - Rate +(Origination costs / Term of loan)

- Margin in project, us lenders typically will lend up to 70-75% of the ARV, so make sure there is enough meat on the bone to meet these numbers and still come in with as little down.

Depending on experience & FICO Score, industry ranges from 75-90% of Purchase price + 100% of rehab

Hi John,

Great questions!

1) Specifically looking at the midwest, I personally am doing a lot of business in Ohio. After seeing my borrowers numbers, the cashflow is extremely good.

2) Yes! Find an agent wherever you are even considering, they will start sending you over properties that meet your criteria.

3) I do recommend talking to a lender and getting a pre approval. Get a good idea on what kind of property you can afford and understanding what that cost of capital will be.

4) On the investment side most lenders can lend nearly nationwide!

5) Given your cash and equity, I recommend just using the capital you have at a 75-80 LTV on future purchases, you can get yourself into about another $800k of real estate at extremely good rates. If you want to scale further that is when you would consider taking some equity out of what you already own.

I personally use prop stream for my business needs, allows me to see everything I need to see. Have never tried REI Pro.

I am confused on what you are asking, I assume he is 20% owner of the LLC in which owns property #1.

If you want to buy a 2nd property without him, simply buy it under a different LLC.

Hi Jayson, In some cases it can be a great decision.

Take a look at the cost of capital the HELOC or refinance is going to give you compared to what you are looking at now.

Also look at the income generated/write offs/appreciation that a rental property is going to give you.

If it is going to yield you positive results, I say go for it!

A Cross Collateralization loan would be the way to get this done, since you have a lot of equity, you may not even need to bring any cash to the table on this

Hi Maria,

There are plenty of lenders on Bigger Pockets who specialize in DSCR loans. I recommend talking with a few and taking into account pricing, expertise and efficiency in terms of the getting the job done for you! Typically a mortgage broker will have an upper hand over a direct lender.

Typically Credit Unions are good sources of capital for Lines of credit but when it comes to refinancing there seems to be quite a bit of red tape.

You want to work with a broker who essentially has the entire mortgage industry in the palm of their hand and can put you into the product best suited to meet your needs.

Hi Sal,

It sounds like a cash out refinance DSCR loan would do wonders for you.

DSCR Loans do not take into account your personal income but instead look at the income generated from the property to pay for the loan. With that kind of fico score, you would be able to secure a rate that is competitive if not beating conventional investment property mortgage rates.

There is no point in buying a rate down in this environment, take no prepay or short prepay option, then refinance when rates drop, no need to spend the capital when it is clear we are headed down in the nearing future.